South Korea International Courier, Express, and Parcel (CEP) Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The South Korea International Courier, Express, and Parcel (CEP) Market is Segmented By Business Model (Business-to-Business (B2B), Business-to-Customer (B2C), and Customer-to-Customer (C2C)), By Type (E-commerce, Non-e-commerce), and By End User (Services, Wholesale and Retail Trade, Healthcare, Industrial Manufacturing, and Other End Users). The report offers market size and forecasts in value (USD billion) for all the above segments.

South Korea International Courier, Express, And Parcel (CEP) Market Size

South Korea International Courier, Express, And Parcel (CEP) Market Summary
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Study Period 2019 - 2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR > 5.00 %
Market Concentration Low

Major Players

South Korea International Courier, Express, And Parcel (CEP) Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Need a report that reflects how COVID-19 has impacted this market and its growth?

South Korea International Courier, Express, And Parcel (CEP) Market Analysis

The South Korean International Courier, Express, and Parcel (CEP) market is valued at about USD 6.5 billion and is expected to register a CAGR of more than 5% during the forecast period. During the outbreak, many duty-free establishments were temporarily closed. Shilla Duty-Free, Lotte Duty-Free, Shinsegae, and Shilla IPark Duty-Free are among the duty-free businesses affected by the outbreak. The budget retailer E-Mart has also been added to this list. Outside of Seoul and metropolitan areas, distribution infrastructure has been expanded due to COVID-19.

  • The retail industry has made a concerted effort to improve the same-day delivery system. As a result of COVID-19, non-face-to-face consumption has become more prevalent, an immediate delivery system has been created, and the 'omnichannel is being consolidated. Food and beverage companies are enhancing consumer convenience by offering same-day delivery services when placing orders.
  • In addition, courier services grew in popularity as the outbreak spread across Korea. After the pandemic, the average number of times people utilized a courier service increased from 6.22 to 9.74 per month. Korea's parcel volume is expected to reach 5.6 billion boxes in the second half of 2023, more than double that of 2019. When split down by age, individuals in their 20s used delivery services 9.5 times per month, up from 5.36 times before the pandemic, a 77% increase and the largest increase of all age groups. However, the online shopping transaction value marked KRW 16.5438 trillion (USD 12.5 Trillion) in January 2022, rising by 11.5% from January 2021. The mobile shopping transaction value marked KRW 12.4978 trillion (USD 9.4 Trillion ) in January 2022, rising by 17.5% from January 2021.

South Korea International Courier, Express, And Parcel (CEP) Market Trends

Cross-border E-commerce is Stimulating the Growth

The cross-border e-commerce market in Korea has increased from USD 2 billion in 2017 to USD 4.5 billion in 2022, resulting in a 23 % of average annual growth rate. While it has been growing at a two-digit rate, Korean domestic retail has been growing at only a 3.8 percent rate every year during the same period. Buying from the Korean retail channels can be more expensive than sourcing goods from overseas even after adding-in international shipping fees and tariffs. Developing cross-border trade channels, especially in emerging nations, has enhanced the adoption of international trade and B2C shipments. Furthermore, the increasing consumer preference for shopping online through various e-commerce portals is also providing a boost to market growth. E-commerce stores partner with courier service providers to deliver their products across domestic and international locations.

With half of the Asia-Pacific online shoppers making purchases cross-border, vendors now are focusing on building extensive knowledge of procedures, such as duty collection, customs clearance, and other minefields. Automated package and freight shipping solutions are available to improve efficiency for the entire shipping process of retail vendors.

Buying agents at various Korean e-commerce platforms are also contributing to the growth of Korea's cross border e-commerce. Many registered sellers at these Korean e-commerce sites source products internationally and send them to Korea. Of all internationally sourced goods sold to Koreans via cross border, 49 percent comes from the United States and the most popular products are health supplements (19.4 %), apparel (17.7 %), electronics (10.4 %), footwear (7.3 %), and handbags and bags (6.8 %).

South Korea International Courier, Express, And Parcel (CEP) Market: Market Share of Cross-Border E-commerce, South Korea, In Percentage, By Country, 2022

Growth in Fashion Sector Driving the Market

South Korea is the 6th largest market for eCommerce with a predicted revenue of USD 101.8 billion by 2023, placing it ahead of France. So far, apparel and personal care sales in 2022 have grown rapidly, reaching more than USD 36 billion and USD 16 billion, respectively. With an expected 7.6% increase in 2023, the South Korean eCommerce industry contributed to a worldwide growth rate of 17.0% in 2023.

Global eCommerce sales are expected to increase in the next years, just as they have in South Korea. Fashion is the most significant market in South Korea, accounting for 32.1% of total eCommerce revenue. Food & Personal Care (25.4%), Electronics & Media (20.7%), Toys, Hobby & DIY (13.3%), and Furniture & Appliances (8.5%) are the next most popular categories. However, over 38 million consumers bought consumer items through e-commerce sites.

Moreover, sales in the fashion category are driven by increasing internet users in the country. In January 2022, the country had more than 50.3 million internet users, with more than 98% of the total population using internet services. Also, South Korean citizens' total annual spending on online consumer goods purchases accounted for more than USD 110 billion, with an annual growth rate of 15%. In January 2022, total online sales accounted for more than KRW 16.54 trillion, in which the fashion category contributed more than a 22% share of sales.

South Korea International Courier, Express, And Parcel (CEP) Market: Online Shopping Transaction Value, South Korea, By Category, In Billion South Korean Won, 2022

South Korea International Courier, Express, And Parcel (CEP) Industry Overview

The South Korean international CEP market is fragmented, with a mix of global and local players, making it highly competitive. Some of the strong players include CJ Logistics, Aramex, DB Schenker, Korea Post, and DHL. Many organizations began investing in extending their logistics operations to take advantage of the prospect of rapid expansion in the CEP industry provided by the need for same-day delivery. The concept of the final mile is encouraging businesses to focus on mergers and collaborations to expand globally and improve their overall service quality.

South Korea International Courier, Express, And Parcel (CEP) Market Leaders

  1. CJ Logistics

  2. Aramex

  3. DB Schenker

  4. DHL

  5. KOREA POST

*Disclaimer: Major Players sorted in no particular order

South Korea International Courier, Express, And Parcel (CEP) Market Concentration

South Korea International Courier, Express, And Parcel (CEP) Market News

  • April 2023: CJ Logistics has signed a business agreement with the big data platform company IGAWorks to establish a cooperative relationship in respect of data between the two. CJ Logistics intends to combine with external data, such as consumer profile data and its own delivery service-originated big data to increase the value of the data involved. Plans to enhance the accuracy of big data using a machine learning-based AI engine, as well as to further divide its classification system into about 8,000 categories.
  • February 2022: DHL Express (international express service provider) announced the expansion and relocation of its Gwangju Service Center to a new facility to support the growing demand for international express services and bolster its logistics network in the region. This expansion includes a total space of 1,315 sq.m. The new service center is 10 times larger than the previous facility.

South Korea International CEP Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Government Regulations

    4. 4.4 Overview of the Logistics and Warehousing Market in South Korea

    5. 4.5 Spotlight on Cross-Border Transportation in South Korea

    6. 4.6 Brief on South Korea Freight Forwarding Market

    7. 4.7 Spotlight on South Korea E-commerce Sector (Commentary on Domestic and Cross-border E-commerce)

    8. 4.8 Impact of COVID-19 on the CEP Market (Short-term and Long-term Impact on the Market and on the Economy)

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints

    3. 5.3 Market Opportunities

    4. 5.4 Porter's Five Forces Analysis

    5. 5.5 Supply Chain/Value Chain Analysis

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Business

      1. 6.1.1 Business-to-Business (B2B)

      2. 6.1.2 Business-to-Customer (B2C)

      3. 6.1.3 Customer-to-Customer (C2C)

    2. 6.2 By Type

      1. 6.2.1 E-commerce

      2. 6.2.2 Non-E-commerce

    3. 6.3 By End User

      1. 6.3.1 Services

      2. 6.3.2 Wholesale and Retail Trade

      3. 6.3.3 Healthcare

      4. 6.3.4 Industrial Manufacturing

      5. 6.3.5 Other End Users

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 CJ Logistics

      2. 7.2.2 Aramex

      3. 7.2.3 DB Schenker

      4. 7.2.4 KOREA POST

      5. 7.2.5 DHL

      6. 7.2.6 Agility

      7. 7.2.7 KERRY LOGISTICS NETWORK LIMITED

      8. 7.2.8 DSV

      9. 7.2.9 HANJIN TRANSPORTATION CO. LTD

      10. 7.2.10 LOTTE GLOBAL LOGISTICS CO. LTD

      11. 7.2.11 Linex Solutions

      12. 7.2.12 C.H. Robinson Worldwide Inc.

      13. 7.2.13 SEKO Logistics

      14. 7.2.14 Nippon Express

      15. 7.2.15 Guangdong SF

      16. 7.2.16 FedEx

      17. 7.2.17 Cainiao Logistics(Alibaba Group)*

    3. *List Not Exhaustive
  8. 8. FUTURE OF THE MARKET

  9. 9. APPENDIX

South Korea International Courier, Express, And Parcel (CEP) Industry Segmentation

CEP (courier, express, and parcel) refers to a set of services that entails the delivery of various commodities and products across many places via land, air, or water. In contrast to courier and parcel services, express deliveries are frequently time-bound, with various high-value consignments arriving in a few days or at a pre-arranged date and time.

The report offers a comprehensive background analysis of the South Korean international CEP market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered in the study.

The South Korea International Courier, Express, and Parcel (CEP) Market is Segmented by Business Model (Business-to-Business (B2B), Business-to-Customer (B2C), and Customer-to-Customer (C2C)), By Type (E-commerce, Non-e-commerce), and By End User (Services, Wholesale and Retail Trade, Healthcare, Industrial Manufacturing, and Other End Users). The report offers market size and forecasts in value (USD billion) for all the above segments.

By Business
Business-to-Business (B2B)
Business-to-Customer (B2C)
Customer-to-Customer (C2C)
By Type
E-commerce
Non-E-commerce
By End User
Services
Wholesale and Retail Trade
Healthcare
Industrial Manufacturing
Other End Users

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South Korea International CEP Market Research FAQs

The South Korea International Courier, Express, And Parcel (CEP) Market is studied from 2019 - 2028.

The South Korea International Courier, Express, And Parcel (CEP) Market is growing at a CAGR of >5% over the next 5 years.

CJ Logistics, Aramex, DB Schenker, DHL, KOREA POST are the major companies operating in South Korea International Courier, Express, And Parcel (CEP) Market.

South Korea International Courier, Express, and Parcel (CEP) Industry Report

Statistics for the 2023 South Korea International Courier, Express, And Parcel (CEP) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea International Courier, Express, And Parcel (CEP) analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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